Consumer behavior changes based on a complex series of external and internal factors, usually based on pain, reward, or a change in the rules. The Great Depression of the 1930s significantly changed consumer behavior for a number of generations. So, what did we learn from the Great Depression we can apply to the generation of The Great Recession?
- Long term benefits are not as important as immediate basic needs, but durability is essential.
- Hyper-competitiveness has less allure than cooperation.
- Ideological extremes become more popular for people seeking solutions.
- The very rich keep on spending, but with a lower profile.
- Disposable income among minority communities will be much slower to recover.
- For younger investors, investments need to be safe and beyond reproach; “get rich quick” will not have the same pull as it did for their parents.
- Entertainment options should be local and cost efficient.
- Cooking at home is increasing in importance.
- The arts provide solace and an escape to an emotionally satisfying place.
- Self-improvement becomes appealing among the unemployed or under-employed.
Now the question is: How do they apply to your business, or do they?